India may be isolated at trade round: U.S.

By Sushma Ramachandran

NEW DELHI, AUG. 9. The U.S. today warned that India's opposition to the new trade round of negotiations is likely to leave it out in the cold at the coming Doha ministerial conference of the World Trade Organisation. With most countries having decided to engage on issues relating to the agenda of the new round, it hinted that India's unrelenting stance on resolution of implementation concerns may leave it isolated.

Based on talks with several countries, the visiting U.S. Trade Representative (USTR), Mr. Robert Zoellick, said the new round was more likely than not to be launched at Doha. He said most countries were now examining the issues to be placed on the agenda and the question mark over the new round seemed to have been resolved.

The USTR who was eulogic in his praise of ancient Indian culture in a speech to captains of industry, was equally scathing in his comment on the rigid opposition to the new round by the present day Government. He stressed that in case the round was not launched, India would lose more than the U.S. which represents 25 per cent of the world economy. With many other countries, the U.S. was already entering into free trade agreements, apart from regional trade arrangements like the APEC and the NAFTA. ``Whither India'', he said as it is not a member of any of these regional groupings. Mr. Zoellick who already stated prior to his arrival that launch of the new trade round at Doha was his priority, argued forcefully in favour of India using its influence to chart out the agenda rather than wait on the sidelines till the decisions were taken.

Stressing that the U.S. wanted to engage India in a ``strategic dialogue'' encompassing the full range of global issues, he said these included areas such as counter-terrorism, nuclear non- proliferation, human rights and environmental protection. On the proposed new round, he said, ``I am hopeful that India, a leader in the developing world, will work with us''. He termed the new round as a ``win-win'' for India and said withdrawal would leave the field to others. ``The sooner India supports new negotiations, the more influential it will be''.

The assured that the U.S. would cooperate to address legitimate implementation concerns apart from working on areas of commonality like copyright protection and e-commerce. The two countries could also work cooperatively to thwart efforts to employ labour and enviornmental concerns for protectionist purposes.

Replying to questions at a press conference, he based his optimism on the prospects for the new round being launched in November on indications given at various fora. For instance, the Shanghai APEC meeting saw China giving its consent to participate in a new round which prompted other countries to begin the process of engagement. A series of meetings were being held to prepare for the new round, he said, including an assessment by the chairman of the General Council after taking into account members' views. There could even be an informal ministerial meeting in Mexico while the Cairns group of countries would be holding talks in September.

Mr. Zoellick conceded that the U.S. did not agree with all the issues that the European Union was seeking to put on the table for the new round. The U.S. position was that it wanted to deal with issues of general consensus. At the same time, it was important to understand the public pressure that forced European countries to take a stand on issues like environment. Thus these needed to be addressed in such a way that these did not become converted into excuses for protectionism.

He said that there was a perception in this country that the Uruguay Round had not brought benefits to India. Terming this as ``false'', he said in the post-Uruguay Round scenario, India's exports to the U.S. had more than doubled and over half of them were duty-free.

He also indicated flexibility about possibility of special and differential treatment for developing countries as well as tariffs on certain products lines which were of a sensitive nature.

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